Entrepreneurship and risk taking

As of now, in addition to long research-based articles, I would also like to write shorter posts that require less mental efforts.

Are entrepreneurs really more risk-takers in their personality or not? In my opinion, entrepreneurs take risks but try to calculate and mitigate them. It is not that entrepreneurs embrace risks and enjoy living in high-risk conditions. Because they want to grow their business and earn money, entrepreneurs need to work on the risk aspect of their work.

Ok, after all, the nature of entrepreneurship dictates more risk, or at least a different type of risk compared to employeeship.

Related: Is entrepreneurship experience good for your future employability?

For entrepreneurs, the risk is not generating enough revenue often coming from a lack of customers who are interested in their product. It could also come from the inability to manage the cash flow of the company or occurring much too costs. For employees, however, the type of risk is very different. Employees run the risk of depending too much on their employer for their income and future. If they have a terrible boss, they face the risk of joblessness which, in turn, can cause financial instability and unhappiness in the future.

The rabbit hole of entrepreneurship is something that once entered, would not be easy to get out. If you experience the prospect of success, freedom and flexibility of starting a business, you are reluctant to go back to the corporate world. This, in fact, makes it attractive to assume the entrepreneurial risk.

About pourya

I am an entrepreneurship postdoctoral research fellow at Tilburg University in the Netherlands. My vision is to fill the gap between entrepreneurship research and practice with this website. Research and practice are two separate islands when it comes particularly to entrepreneurship. There are hundreds of papers/articles written every month but we hardly see their contribution to real life entrepreneurship.

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